Kalshi

Kalshi operates as the first US federally regulated exchange where traders can speculate on the outcome of various events. The company has received historical regulatory approval from the Commodity Futures Trading Commission (CFTC) to offer a new asset class known as 'event contracts.' These contracts allow investors to take positions on whether specific future events will occur, ranging from Covid-19 statistics to legislative outcomes in Congress. Kalshi's platform broadens the traditional scope of commodity derivatives, enabling the futures market to address novel economic risks. The company serves a diverse clientele, including individual investors and institutional traders, who seek to hedge or speculate on events with economic significance. Kalshi generates revenue through transaction fees on trades executed on its platform. The company is backed by prominent investors such as Sequoia, Henry Kravis, Charles Schwab, and Y Combinator.

Keywords: event contracts, CFTC approval, futures market, economic risks, trading platform, individual investors, institutional traders, transaction fees, regulatory compliance, speculative trading.